Question

During recessions, federal government officials find their expansionary fiscal policy actions thwarted by the actions of state and local government officials, who are raising taxes and lowering spending because most state and local governments?

Answer 1

Answer: ARE MORE CONCERNED ABOUT POLICY IMPACTS ON BUSINESSES THAN CONSUMERS.

Explanation: Expansionary policies are economic policies put in place to enhance the economy,it is usually done by Government to reduce the taxes paid by the people in order to make more money available for spending by households. It also involves the increase in spending by the Government in order to increase and improve the level of infrastructures,all these efforts are aimed at reducing the impact of recession and generally improve the economy.